Subsidy I (Biomethane Subsidies)
Updated: 17.01.2019
Author: Lilian Pungas
To further the use of biomethane in the transport sector, subsidies are paid (1) to create an infrastructure for biomethane petrol stations and (2) to promote biomethane use in public transport systems in municipalities. The Act sets out two goals for the year 2020: 1) a yearly consumption of at least 4,000 ktoe of biomethane and 2) the creation of 10 biomethane petrol stations.
The support scheme is currently available until 14 February 2021 (Act on Biomethane Subsidies, §8(1)).
However, according to the Ministry of Economic Affairs and Communications (MKM), the aim is to prolong the support scheme 2019 until 2023.
Eligible technologies
| Biofuels | Eligible (Act on Biomethane Subsidies, §5) |
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Amount
Biomethane. For the development of biomethane petrol stations, the maximum share of costs possible to pay for through the subsidy is 35% per project and the highest possible amount is €350,000 per project. For the public transport system, the maximum share of costs possible to pay for through the subsidy is 30% per project and the highest possible amount is €4,000,000 per project. A total budget of €9,000,000 is available through this measure: €6,000,000 for projects in the public transport system in municipalities, and €3,000,000 for biomethane petrol stations. The funds are available until the year 2020 (Act on Biomethane Subsidies, §8-9).
Addressees
The addressees are biomethane producers, petrol companies, transport companies and municipalities.
Procedure
Process flow | To allocate the subsidies, an auction will be announced that will last 45 days. The Environmental Investment Centre will announce the opening of the auction, its budget and the deadline for applications in a nationwide newspaper and on the Centre's website. This subsidy is not allocated through a round-based system, but it follows the first-past-the-post principle. When the funds for the subsidies are exhausted, it will be yet again announced in a nationwide newspaper and on the Centre’s website. The application for receiving the subsidy will be submitted to the Centre in a digitally signed document or via e-mail. The allocation of the subsidy is decided by a selective committee, consisting of representatives from the Centre, the Estonian Development Fund, Tallinn Technical University and special interest groups. The exact deadlines, conditions, control and accountability measures will be specified in the decision of the committee for allocating the subsidy.
The support scheme is available until 14 February 2021 (Act on Biomethane Subsidies, §8(1)).
However, according to the Ministry of Economic Affairs and Communications (MKM), the MKM aims to prolong the support scheme 2019 until 2023. |
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Competent authority | The scheme is implemented by the Ministry of Economic Affairs and Communications, applications are reviewed and payments made by the Environmental Investment Centre. |
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Distribution of costs
| European Union | The budget for the subsidies comes from EU structural funds. |
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Estonia
